Economies of Scale

question 238

Multiple Choice

Economies of scale

• A)require inputs' MPP to fall as output increases (everything else equal).
• B)pertain to the long run only.
• C)refer to increased output generalized by an increase in the quantity of a single input.
• D)imply that the AC curve will fall continuously as output increases in the short run.

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Definitions:

Contract Rate

The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.

Bond Indenture

A legal contract specifying the terms and conditions under which bonds are issued, including details of interest payments and the maturity date.

Contract Rate

The agreed-upon interest rate specified in a contract, often relating to loans or bond issues.

Effective Rate

The interest rate on a loan or financial product, rephrased to reflect the actual annual cost of the product over its repayment term.